New Teams: Yay or Nay?

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Reports are, F1 is entertaining 2 new team bids from China for the near future. Liberty Media have proven to be more liberal leaders of the F1 ship, leading many to believe these bids may well materialize. But the question seemingly no one is asking is: why?

As it stands, there are 10 teams on the grid:

3 Front-Runners (Mercedes, Ferrari, Red Bull)
5 Mid-field Teams (Force India, Williams, Toro Rosso, Haas, Renault)
2 Back-Markers (Sauber, McLaren)

If either of those prospective teams make it, where do they fit in? Surely not at the front, and where's the room in the middle? Where do you fit a new team in that order? Chances are, if a new team comes in, they're starting right at the back.

Beyond the team's needs, where do they get the drivers? F1 is meant to be exclusive, and any new drivers they brought in would just dilute the pool. (Theoretically) the best drivers already have seats in F1.

Oh, and the last time we added multiple teams at once in F1?

They came up with a car that looked like this...






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